EARNINGS PER SHARE

3 Months Ended

Mar. 31, 2020

EARNINGS PER SHARE

EARNINGS PER SHARE

NOTE I – EARNINGS PER SHARE

The following table sets forth the computation of basic and diluted earnings per share:

	Three Months Ended
	March 31
	2020		2019
	(in thousands, except share and per share data)
Basic
Numerator:
Net income	$	1,902	$	4,888
Effect of unvested restricted stock awards		(1)		(9)
Adjusted net income	$	1,901	$	4,879
Denominator:
Weighted-average shares		25,390,377		25,570,415
Earnings per common share	$	0.07	$	0.19
Diluted
Numerator:
Net income	$	1,902	$	4,888
Effect of unvested restricted stock awards		(1)		(9)
Adjusted net income	$	1,901	$	4,879
Denominator:
Weighted-average shares		25,390,377		25,570,415
Effect of dilutive securities		856,423		941,934
Adjusted weighted-average shares and assumed conversions		26,246,800		26,512,349
Earnings per common share	$	0.07	$	0.18

Under the two-class method of calculating earnings per share, dividends paid and a portion of undistributed net income, but not losses, are allocated to unvested RSUs that receive dividends, which are considered participating securities. Beginning with 2015 grants, the RSU agreements were modified to remove dividend rights; therefore, the RSUs granted subsequent to 2015 are not participating securities. For each of the three-month periods ended March 31, 2020 and 2019, outstanding stock awards of 0.2 million were not included in the diluted earnings per share calculation because their inclusion would have the effect of increasing the earnings per share.